Financial Crimes Enforcement Network (FinCEN)

Background

1. The deed transfer is for residential real estate, including vacant land intended for the construction of a 1-4 family structure;

2. Purchase is made with all cash or without institutional lender financing;

3. At least one of the buyers/transferees will be a legal entity, LLC, corporation, partnership, trust, trustee, or other non-natural person. 

If a transaction meets these reuqirements details about the purcahse, the buyer and seller must be reported to the United States Department of Treasury's Financial Crimes Enforcement Network (FinCEN). 

Advisory and Background Documents

View the FinCEN Real Estate Rule Fact Sheet

What is a Transferee Entity or Trust

1. Property information. This inlcudes the property's street address, legal description and date of closing.
2. Reporting Person information. This includes the full legal name of the reporting person, the category they fall under in the reporting waterfall, and their street addess.
3. Buyer Information. This includes
   • for Entities
     • Legal name
     • Current street address
     • IRS tax ID number (TIN) 
     • EACH beneficial owner of the entity. A beneficial owner of a transferee entity is someone who (i) exercises substantial control over the entity (like an executive or managing member) or (ii) owns or controls at least 25% of the entity's ownership interest
     • EACH Beneficial Owner's full legal name, date of birth, current residential street address, citizenship and IRS TIN (usually a social security number).
   • for Trusts
     • Legal name
     • Date trust instrument was excuted
     • IRS tax ID number (TIN)
     • Whether trust is revocable
     • EACH beneficial owner of the trust. A beneficial owner of a trust is  (i) the trustee, (ii) a beneficiary who has the right to demand a distribution of, or withdraw, substantially all of the assets of the trust, and (iii) a grantor or settlor who has the right to revoke the trust.
     • EACH Beneficial Owner's full legal name, date of birth, current residential street address, citizenship and IRS TIN (usually a social security number).
4. Seller information. This inlcudes the seller's full legal name, date of birth, current residential street address and IRS TIN. 
5. Financial information. This inlcudes the total consideration paid by a the buyer and the dollar amount, method of payment, account number, originating bank and payor for each payment used to pay the consideration. 

What Transactions are Exempt?